Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Information Architects (IARC): E-Commerce & EIP -- Ignore unavailable to you. Want to Upgrade?

To: bob oserin who wrote (4952)	3/17/1998 4:52:00 AM
From: tech	Read Replies (1) \| Respond to of 10786

bob, with all due respect, what are you relying on for those figures ? Remember, projections are projections, and in the case of Bob Gruder and ALYD, none of them have come true. From what I remember, please correct me if I am wrong, but ALYD projects to have $11 million in revs in Q1 of 1998.. correct ? we have to set some ground rules: 1. I believe that there is a shortage of resources and that salaries have increased 25% in 1997 and, once the bidding war starts, we could see a increase of 30% to 50% in 1998. news.com Labor shortage compels employers to hire from all walks of life amcity.com 2. From the last 10Q we can see: exchange2000.com _____________________________________________ Nine Months Ended 9/30/97 -------------- Operating Expenses =================== Payroll and related costs $9,369,319 Depreciation & amortization 455,329 Other operating expenses 2,403,611 -------------- Total Operating Expenses $12,228,269 With an avg. of 230 employees. _________________________________________________ This works out to approx. $4,526 avg. per employee per month. [ ( ($9,369,319 / 9 months) ) / avg. 230 employees ] once the FYE 1997 numbers are released, it will be interesting to see how the avg. cost per employee has been effected. Anyway, it is no big secret that ALYD plans to have 500 employees in 1998 If we say that salaries are due to increase just by 30% in 1998 then we would see that the current $4,526 avg. figure per employee makes per month, will be increased to $5,883 $5,883 x 500 employees x 12 months = $35.3 million for payroll alone! We should also note that the "other operating expenses" were approx.. 20% of the total expenses for the nine months ended 9/30/97. If we add this into the equation that would be another $7 million in expenses, which would take the figure up to $42.3 million total expenses. so at only a 30% increase in salaries in 1998 we would see ALYD's burn rate (with 500 people) at approx. $42.3 million per year. Salaries went up 25% in 1997 and there was little work to do. What do you think is going to happen when the bulk of the work comes in and resources dry up faster than companies can bid for them. I think we may see salaries increase as much as 50% I know that lots of people like to throw around the huge numbers, much like they did last year when I was the only voice of reason, but let us not forget that ALYD has yet to make one single DIME! Once the stock takes a hit on the FYE 1997 numbers, the 1998 Q1 numbers will be crucial to this company's market acceptance and credibility.